One millionth Audi delivered in China

Audi announced today that its one millionth vehicle in China, a metallic blue Q5, was delivered to its customer in Changchun. For those who don’t know, the Chinese story of Audi began back in 1988, when the German manufacturer announced a license agreement with FAW covering the assembly of the Audi 100.

In 1995, Volkswagen AG, which owns Audi, and FAW, signed a letter of intent integrating Audi production into the joint venture. In 1996, the manufacturer started the production of Audi 200, while in 2000 Audi introduced the A6 to the market.

A long-wheelbase version of the sedan, the A6L was introduced in mid-2005, while the A4L was introduced in early 2009.

Currently, Audi’s Chinese production includes the A6L, the A4L and, since 2009, the Q5. In order to boost its sales in China, Audi also announced that it plans to expand its dealership network from 157 locations in 106 cities to over 400 dealerships by 2013.

Press Release

One million Audi cars sold in China

Today the one millionth Audi in China – a metallic blue Q5 – was handed over to a customer from Changchun. This landmark figure exemplifies a unique success story that began in 1988 with a license agreement between Audi and FAW covering the assembly of the Audi 100. The one million milestone was marked with ceremony held in Changchun. In attendance were the Board of Management of AUDI AG, the partners from First Automobile Works (FAW) and more than 7,000 guests, including the plant employees.

“This record is yet another milestone in the history of Audi in China,” remarked Rupert Stadler, Chairman of the Board of Management of AUDI AG. “We were the first premium brand in China 22 years ago and have been the unrivaled market leader in this segment ever since – a success story we’re extremely proud of.” Of the cars delivered to customers, 950,000 were produced in Changchun and the other 50,000 imported. To date, no other carmaker in the premium segment has managed to sell over a million cars in the Chinese market. In the first nine months of 2010, Audi delivered some 175,000 units in China and Hong Kong, also a new record.

“Over the entire year, we will deliver well over 200,000 cars to customers in China,” declared Dr. Dietmar Voggenreiter, President of Audi China. “And we have already set our sights firmly on the next sales target: We intend to reach the second million within the next three years.”

The history of the four rings in China began in 1988 with a license agreement between Audi and FAW covering the assembly of the Audi 100 with imported parts kits. Besides the technology transfer required for production and planning, the agreement also included the establishment of an after-sales organization and the training of the Chinese employees. In 1995, Volkswagen AG and FAW signed a letter of intent integrating Audi production into the joint venture. One year later, the Audi 200 began rolling off the assembly line with a Chinese fabrication content of 60 percent. In 2000, Audi and FAW-VW introduced the first Audi A6 to the market – a long‑wheelbase version designed to satisfy Chinese customers’ requests for a chauffeur sedan with extra roominess in the rear. The next-generation A6L debuted in mid-2005, followed in early 2009 by the A4L, the first long version in China’s premium B segment.

“Today we can look back on a successful, amicable partnership with AUDI AG, one we hope to be able to continue developing,” stated An Tiecheng, President of FAW-Volkswagen. Established in 1953, First Automobile Works is the oldest automotive group in China. In Changchun today, Audi produces the A6L, the A4L and, since 2009, the Q5 for the Chinese market. Last year, with a new assembly hall, the Company increased its production capacity to 300,000 units. Audi also plans to expand its dealership network from 157 locations in 106 cities to over 400 dealerships by 2013.

Recent studies conducted by market research institute J.D. Power also attest to the brand’s success among Chinese customers. According to the Customer Service Index (CSI), Chinese customers were more satisfied with AUDI AG’s service portfolio than with that of any other premium carmaker. Similarly, Chinese new-car buyers ranked Audi number one in the institute’s Sales Satisfaction Index (SSI).